A number of investors are swarming in the East African state of Tanzania. The economy has offered a hotbed of opportunities that has seen a number of potential investments spring up life and made positive impact to the citizens. The leadership of Premier John Pombe Magufuli has been a major factor in this change, and the President is still working out his muscles to strengthen the country’s economy state. The oddity of life however is how amazingly paradoxical it is. You can hardly have too much of one without another.
The impact of tax has really raised eyebrows on a number of people. A number of Tanzanians have lamented on poor infrastructure as well, making it expensive for transport of goods and services. What has been the biggest hit to investors and business persons has been the effect of tax. The economy as well has had its challenges but tax remain to be the key hurdle to further improvement.
Taxes generate revenue to the government, no doubt about it. Moreover, that is how the government gets finances to run the activities in the country. Their presence is not to scare off businesses. However, when they are too high, they tend to discourage businesses. Basically, supply and demand will experience some imbalance. Prices of commodities go high and later the customers will be reluctant to purchase the products.
On the other end, some Tanzanians have not experienced a lot of difference in the economy. They believe nothing much has changed and maybe the normal roller coaster of ups and downs in business environment. Their opinions are not null and void as they are not directly affected by impose of taxation as the sellers and retailers would. Life continues and goes on as if the leadership never changed.
The taxation imposition has affected the income of working class. They find out that most of their pay, in as much as they spend on their bills, the government is cutting a chunk of their hard work earned money. This has led to some requesting for pay rise but then more money, more taxes. It is directly proportional in the equilibrium. In the midst of all this qualms and conundrum, taxes continue to prevail regardless of the economic state of the country then.
Infrastructure has played a role but not as much as taxes in terms of affecting business. Taxes as most Tanzanians see, need to be sliced down.